TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsBarter to reduce forex risks in cross-border trade, govt hopes
Avoiding use of the US dollar, Indonesian companies recently signed countertrade deals with Philippine business partners worth $350 million. Jakarta encourages cross-border barter as a way to tackle exchange rate risks, but the measure will do little to help the ailing rupiah, experts note.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Workers load and unload containers at Tanjung Priok Port in Jakarta on Feb. 4, 2026. (AFP/Bay Ismoyo)
T
he government is encouraging cross-border barter to reduce currency risks as local companies have struck deals worth US$350 million with Philippine business partners that avoid use of the United States dollar.
Countertrade, the exchange of goods for goods, could help businesses hedge against sharp exchange-rate swings that have rattled regional currencies by reducing reliance on dollar settlements during market turbulence, Trade Minister Budi Santoso said on Monday.
The push comes as the rupiah has weakened about 8 percent this year to become Asia’s worst-performing currency in 2026 after sliding to record lows amid rising oil prices and a stronger US dollar.
The rupiah fell to a record low near Rp 18,200 before recovering slightly after Bank Indonesia (BI) unexpectedly raised its benchmark interest rate by 25 basis points (bps) to 5.5 percent on Tuesday. The currency was changing hands around Rp 17,900 on Wednesday afternoon.
Read also: BI hikes rate in surprising move, rupiah gains
“A well-structured countertrade scheme can be a useful trade instrument amid global uncertainty and currency pressures,” Budi Santoso said on Monday.
Indonesian and Philippine companies on Monday signed two memorandums of understanding (MoUs) on countertrade agreements worth as much as $350 million, covering textile and steel supply chains in deals structured without conventional dollar-denominated payments.
